Jupiter UK Growth gives up

Jupiter UK Growth gives up – In a surprise move, the board of Jupiter UK Growth has released the following statement:

The market capitalisation of the company remains very low and is currently approximately £26m which falls well below the minimum size generally considered investable by wealth managers and other prospective investors. The company is now materially smaller than it was when the decision to appoint Richard Buxton as the new investment manager was announced in February.

Having discussed this issue with its advisors, Numis, the board has come to the conclusion that it is no longer likely to be able to grow the trust in its present form by attracting significant new investors. Jupiter have been advised of this opinion, which they have accepted. The board has therefore been considering the options for the future of the company and its shareholders.

The board currently believes that the best option is to liquidate the company so that shareholders will have the option to receive cash or, if possible, the ability to roll over their investment into another investment vehicle. Your board is discussing these options with its advisors and establishing the interest of investment managers in offering rollover options. Any suggestions that shareholders may have regarding the future of the company would also be welcome.

The board expects to be in a position to update shareholders shortly but in any event no later than at the Annual General Meeting in November.”

[We had expected that Jupiter would effectively relaunch the company, raising enough to make it viable. Market conditions may not have been conducive to this in February but now there are at least three new UK equity funds on the blocks. It seems a shame that the board didn’t feel able to take advantage of its head start on these competing trusts. The best solution now may be to offer a rollover into whichever of these succeeds in its launch.]

JUKG : Jupiter UK Growth gives up

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